Tuesday, July 15, 2014

Judge Rules Park City Mountain Resort Will Lose Slopes

Click here for the latest Utah Ski Country Real Estate Comparative Statistics for the past six months, including Number of Units Sold, Median Sales Price, % of Original Listing Price, Median Price Per Square Foot, and Median Days on the Market. This data is organized by ski resort area.

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THE NEWS

A judge has ruled that Park City Mountain Resort missed a key deadline to renew its lease with Talisker Holdings, and must give control of the slopes at Park City to Talisker Holdings.  In a ruling handed down from 3rd District Court Judge Ryan Harris,  Harris stated that most of Park City Mountain Resort's claims feel short.

The ruling should act as a major boost for Vail Resorts' efforts and offer to purchase the resort, although Park City Mountain Resort has promised an appeal.  John D. Cumming, CEO of PCMR, issued a statement which read in part - "We respect the Court's decision but at the end of the day it doesn't change the fact that Vail and PCMR can and must resolve this dispute.  For that to happen, both parties will need to sit down at the table, negotiate in good faith, and come to a rational agreement.  We are committed to doing exactly that, which is why we have made repeated offers to buy or lease the disputed property for an amount far in excess of market value.  But let me be clear; we will not walk away and allow a Vail takeover."

The relationship between Talisker Holdings, Vail Resorts and the dispute over the lease with PCMR was detailed in the April post of this blog (right hand toolbar).

The best guess is appeals will take at least a year and no change in the operation of the ski resort will occur until the appeal process is exhausted, or a settlement is reached.  In the absence of an outright sale to Vail Resorts, Talisker would replace PCMR with Vail as its new tenant and operator. Stay tuned for the latest developments on a situation which has huge implications for the Utah ski industry, and likely real estate sales in the Park City, Dear Valley and Canyons area.

More News
 
Statistics continue to point to a gradually shifting real estate market for Utah mountain and ski resort property.  The shift varies in strength depending on the location and resort, but there is little doubt that the deals that buyers have come to expect are fast disappearing.  The shift from a buyer's to seller's market continues to gain strength.

Leading the list of resort areas where property sales or median prices continue to rise, and/or days on the market before a sale takes place continues to drop - is the Ogden Valley and the Ogden bench.  The Ogden Valley is home to Snowbasin, Powder Mountain and Nordic Valley (formerly Wolf Mountain), and development plans by new owners at both Powder and Nordic, detailed in earlier posts of this blog, could well be a big reason for the improving market.  The city of Ogden has also been rated by Powder Magazine and National Geographic near the top of their lists for "best ski towns" or "best recreational opportunities" for the past couple of years.

The Deer Valley/Park City area has seen a steady drop in the average days a property is on the market before it sells.  A similar drop in days on the market is also a continuing trend at the Canyons, as well as an uptick in median price.  The Sundance/Provo Bench area reports a rise in median price and the median price sold to median original listing price was an eye-popping 105%.